Gift Aid and tax benefits
The American School in London Foundation (UK) Limited
The American School in London Foundation (UK) Limited is a company limited by guarantee, registered in England & Wales (company no. 04131404), which is wholly-owned by the American School in London Foundation and is a charity registered with the Charity Commission for England & Wales (registration no. 1086037).
For US federal tax purposes, the ASL Foundation (UK) Ltd. is classified as a disregarded entity, and therefore contributions made to the ASL Foundation (UK) Ltd are tax-deductible for US taxpayers to the full extent of US tax code (US tax ID 13-6258480). Contributions to the ASL Foundation (UK) Ltd. may also be eligible for UK tax relief.
Donors who make donations to this entity and who pay taxes in both the UK and US may be eligible for tax benefits in both countries for the same gift. If you are a US taxpayer, you may be able to deduct your personal donation plus the Gift Aid claimed by the ASL Foundation (UK) Ltd.
Mr. & Mrs. Anthony Phillips
Mr. & Mrs. Phillips pay taxes in both the United States and the United Kingdom at the 45% rate. The Phillips Family make a contribution of £1,000 to the ASL Foundation (UK) Ltd. Mr. Phillips signs a Gift Aid declaration. The ASL Foundation (UK) Ltd claims a rebate of £250 from HMRC. In his UK tax return, Mr. Phillips claims £312.50, so in effect he has paid just £687.50 to the School. Because Mr. Phillips also pays tax in the US. Mr. Phillips itemizes his donation plus Gift Aid on his US tax return.
- Donor makes personal gift of £1,000
- Donor completes Gift Aid Declaration form
- ASL Foundation (UK) Ltd submits Gift Aid claim to HMRC for £250
- Donor recognized for gift of £1,250
- Donor claims £312.50 on UK taxes
- Donor itemizes £1,250 deduction on US taxes (donation + Gift Aid amount)
Ms. Jones pays tax only in the United Kingdom at the lower rate. She makes a contribution of £1,000 to the ASL Foundation (UK) Ltd. and signs a Gift Aid declaration. ASL Foundation (UK) Ltd claims a rebate of £250 from HMRC.
Individual circumstances may vary. Please consult your tax accountant or financial planner.